How Much Do Healthcare Managers Make?

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The healthcare industry in the United States is complex and rapidly growing. To keep up with this demand, healthcare organizations across the country need dynamic and dedicated managers. As leaders of healthcare organizations, these professionals earn competitive salaries.

Healthcare managers earn more than six figures per year on average. These professionals can earn more when they work in hospital settings. On this page, we’ll cover what you can expect to make as a healthcare manager, as well as the contributing factors that might impact your salary.

According to Payscale, the average annual salary for healthcare managers was $73,230 as of March 2024. However, the average salary can vary greatly depending on location, level of education, and experience in the field.

For example, according to Payscale, the average salary for those with a bachelor’s in healthcare management is $65,000, while the average salary for master’s degree-holders is $80,000.

One of the more popular jobs for these healthcare professionals is medical and health services managers. According to the Bureau of Labor Statistics (BLS), the median annual salary for these professionals was $110,680 in 2023, more than two times the average salary in the U.S. ($48,060).

Job growth in this field is expected to remain robust due to the healthcare industry’s continually expanding and evolving nature. The BLS projects a 28% increase in health services managers’ jobs between 2022 and 2032, which is much faster than the average projected growth for all other occupations (3%).

A need to replace workers who are expected to switch occupations or exit the labor force altogether is also contributing to the growing need for healthcare managers.

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Landing a high-paying healthcare management job typically requires a combination of education, years of experience, and skills. A relevant undergraduate healthcare degree is a basic requirement, while advanced degrees are often preferred for higher-paying positions. Certifications can also give you a competitive edge, like becoming a Fellow of the American College of Healthcare Executives (FACHE).

The following occupations pay some of the highest salaries in the field of healthcare management.

Healthcare management salaries can vary significantly by state. States with the highest costs of living tend to offer the highest salaries in the field.

For instance, health services managers in California earned a median salary of $139,430 in 2023, according to the BLS. Alternatively, states with lower costs of living, like Alabama and Mississippi, have notably lower average salaries, at $86,590 and $83,640, respectively.

According to the BLS, healthcare managers working in general medical and surgical hospitals earn the most. These professions earned an annual wage of $145,390 in 2023. Other sectors offering competitive salaries include offices of physicians ($134,330) and outpatient care centers ($129,500).

The scientific research and development services industry is also extremely lucrative for healthcare managers, with professionals earning an annual mean wage of $228,170 in 2023. However, this industry employs less than 10,000 healthcare managers, according to the BLS, making it far more niche than other industries that employ hundreds and thousands of healthcare managers.

Your education level and years of relevant work experience can greatly affect your earnings in the healthcare management industry. Higher degrees of education can lead to improved performance and better career prospects.

Since hospitals employ the most healthcare managers and pay some of the most competitive salaries, we’ll focus specifically on salaries for occupations in this industry.

Note: The insights on this page — excluding school descriptions — were reviewed by an independent third party compensated for their time by BestColleges. Page last reviewed May 20, 2024.